India’s electricity demand showed early signs of recovery in May 2026, rising by 4.7% YoY during the first 10 days of the month, supported by higher temperatures, following a subdued FY2026 impacted by extended monsoons and a high base. 

Demand had already picked up modestly by 4.4% in April 2026 and is expected to rebound to ~5% in FY2027, aided by normalised weather, a lower base and sustained industrial and commercial activity, albeit contingent on weather stability. Spot power tariffs on IEX softened sharply to Rs. 3.4 per unit in May 2026 from Rs. 5.3 per unit in April, reflecting improved supply availability, and are likely to remain moderate in solar hours.

Source: ICRA Research, Central Electricity Authority (CEA), GCIL